escorts ltd. - best tractor manufacturing companies india, …€¦ · · 2017-08-09escorts ltd....

Escorts Ltd.BSE: 500495 | NSE: ESCORTS

Q2 FY16 Earning Presentation

November 02, 2015

www.escortsgroup.com

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http://nikhilnanda.in/


http://www.escortsgroup.com/

• Financial Highlights

– Q2 ended September’15

– H1 ended September’15

• Management Message

• Industry Overview

• Business Segments Highlights

• Fact Sheet

• Share Holding Pattern

• Annexure

2www.escortsgroup.com

Content













Q ended Sept’15 Highlights

Volume

• Tractor volumes correspondingly down by 23.8% to 11,438 on Y-o-Y andsequentially down by 23.2% on Q-o-Q.

• Construction volume correspondingly down by 18.1% on Y-o-Y andsequentially up by 20.5% at 612 on Q-o-Q.

RevenueCorrespondingly down by 19.3% on Y-o-Y led by lower volume and Sequentially down by 18.0% to ` 801.7 Cr on Q-o-Q.

EBIDTA

• Correspondingly down by 11.9% on Y-o-Y and Sequentially down by 48.7% at ` 29.5 Cr. on Q-o-Q led by lower volume.

• Margin correspondingly up by 31 bps on Y-o-Y and sequentially down by 220 bps to 3.7% on Q-o-Q.

PATAt ` 16.2 Cr. up correspondingly by ` 24 Cr. against loss of ` 7.9 Cr. in Q ended Sept’14 and down by ` 20.1 Cr. against ` 36.3 Cr.in Q ended June’15.

Debt At ` 464 Cr.













H ended Sept’15 Highlights

Volume• Tractor volumes down by 19.9% at 26,313 against 32,862 last year, down

due to lower crop prices & deficient monsoon.• Construction volume down by 23.6% at 1,120 on Y-o-Y.

Revenue At ` 1,779.4 Cr by 16.1% against ` 2,121.7 Cr last year led by lower volumes.

EBIDTA• At ` 87.1Cr. against ` 90.4 Cr. last year led by cost optimization and

product mix changes.• Margin at 4.9% against 4.3% last year.

PAT At ` 52.5 Cr. against ` 26.3 Cr. in last year.

EPS At ` 4.40 against ` 2.20 in last year.













Management Message

Rajan Nanda, Chairman and Managing DirectorThe tractor industry has been adversely impacted by the poor and uneven monsoon. Theimpact of poor monsoons has been accentuated by the cyclical nature of the industry. There isfarm distress that is getting reflected in the overall industry recording steep drop in tractorsales though there are indications that the second half will show better results. At a macrolevel, the farm economy would do well with more government engagement in areas such as astrong and effective crop insurance regime, easing of loans for seeds and inputs. The market isstill to echo the good effects of grand plans in infrastructure. The ambitions in railways,however, has started to percolate to the manufacturers, albeit very feebly. For increasedindustrial confidence, sustained growth across sectors would be a welcome boost

Nikhil Nanda, Managing DirectorThe adverse market situation due to poor monsoons and sluggish infrastructure investment hasimpacted the entire industry. The focus continues to be maintaining profitability through growthand cost management. In a tough market with dropping volumes, we have increased our marketshare in tractors which is a small but significant win. The 20% increase in constructionequipment over the previous quarter needs to be maintained. The focus for the second half ofthis fiscal will be to consolidate markets, strengthen presence in existing geographies whileexpanding reach in new segments and markets. As the economy picks up, we expect greatertraction in the Railways and Construction business. There are also a number of initiatives toimprove brand recall, strengthen customer engagement and engage employees intransformational endeavours.












141,483 141,844

96,900

142,251

106,276

Q ended Sept'14 Q ended Dec'14 Q ended Mar'15 Q ended June'15 Q ended Sept'15

Domestic Industry


Tractor Industry Overview

• Y-o-Y Industry down by 24.9%, Q-o-Q Industry down by 25.2%.• Deficient monsoon, worsening water reservoirs, lower WPI (Inflation) has resulted in lower

disposable income in rural area, impacting rural demand negatively.• Industry downtrend likely to continue in H2FY16 and it is expected to decline for the second straight

year in 2015-16.• Industry is expected to go down by 8-10% on an annual basis.

• The long term growth fundamentals of industry are strong with lowering of the replacement cycle,but the pace of the central & state Government’s policy roll out and the final monsoon behaviorwould govern the short term industry performance.












7

Construction Equipment Industry

• The construction equipment industry is de-growing consecutively in the 5th year.• Served industry down by went down by 3.9 % in Q2 FY16• Some sectors of the infrastructure industry like roads & mining are looking up

resulting in increase in demand for excavators and compactors.• Road Construction segments has shown some signs of improvement. The

backhoe loader industry is yet to show signs of revival. Crane market in thesecond half should be better than the first half this year.

• In the short term, industry sentiment looks better especially in light of number ofroad projects having been awarded & the rate cut by RBI. However any structuralrevival in the industry is expected to take time and may be pushed to the nextyear.

Industry Overview












Business Segment Highlights

Escorts Agri Machinery

(EAM)

75% of Q2 FY16 Revenue

Escorts Railway Products

(ERP)


Escorts Construction Equipment

(ECE)


Escorts Auto Products

(EAP)


• Y-o-Y Domestic tractorvolumes down by 20.0% to11,293 tractors in Q2.

• Q-o-Q Domestic volumeswent down by 22.4%

• Q-o-Q export down by 57%to 145 tractors.

• Domestic Share of Marketat 10.6% in Q2 FY16 up by40 bps Q-o-Q and 60 bps Y-o-Y.

• EBIT Margins at 6.7%against 7.1% Y-o-Y.

• Volume at 612 in Q endedSept’15 up by 20.5 on Q-o-Qand down by 18.1% on Y-o-Ybasis

• Served industry down by3.9% in Q2 FY16 in Y-o-Y.

• Few segments like CrawlerExcavators, Wheel Loadersand compactors have seen apositive movement.

• Backhoe Loaders (-7%),Mobile Cranes (-10%) & Off-highway trucks have seendecline.

• Positive Swing of 497 bps atEBIT Y-o-Y.

• Y-o-Y revenue up by 13.1 %to ` 53.6 Cr. in Q2.

• Order book stood at ` 65Cr. which will get executedin the next 3-4 months.

• EBIT Margins up by 533 bpsto 14.9% on Y-o-Y and upby 199 bps on Q-o-Q.

• Revenue at ` 24.3 Cr. in Q2FY16 against ` 26.8 Cr. lastyear

• Positive swing of 690 bps atEBIT Y-o-Y.

• Going forward our focuswill be to increase the salesin high margin segmentsand achieve breakeven.












9

Recent Development(Product launches-FY16)

Farmtrac Classic Series ( 41-50 HP)“Modern Inside Classic Outside”

• ‘Kheton Ka King’.• Best-in-class combination of modern design,

stunning looks, and world-class technologies


Powertrac Euro 45 & 50 (41- 50 HP) A technological marvel where for the first

time style & comfort comes without compromising with power & performance.












10

Recent Development(Product launches-FY15)

Anti Lift Tractor by POWERTRAC (31-40 HP) Indigenously designed, India’s first Anti Lift

Tractor Built around driver safety and owner savings,

ALT is specifically positioned for haulage activities.


XP series by Farmtrac ( 31-40 HP)• Most fuel efficient tractor in all

applications positioned as Mileage Ka Champion”

• Available as “XP37” & “XP41”













Fact Sheet

Headquarters Faridabad, Haryana, India

Initial public offering 1991 (BSE and NSE(India))

FY15 Earnings

Revenue INR 3,985.8 Crore (USD 632.7 mn)

Net Profit INR 74.7 Crore (USD 11.8 mn)

EPS INR 6.26

H1FY16 Earnings

Revenue INR 1,779.4 Crore (USD 282.4 mn)

Net Profit INR 52.5 Crore (USD 8.3 mn)

EPS INR 4.40

Book Value Per Share INR 150.81 USD = 63 INRIn H1FY15, Company has implemented the voluntary retirement scheme aimed particularly at restructuring of Escorts Auto

Products. The total amount paid during the quarter ended 30th September 2014 under the said scheme including related

terminal benefits is Rs. 31.41 Cr., which is included under the head “Exceptional Items”.













Share Holding Pattern

Share Holders (%) Sep'14 Dec'14 Mar'15 Jun'15 Sept'15

Promoters 41.96 41.96 41.96 43.01 43.01

FII's 6.72 8.27 9.31 7.58 8.33

DII's 3.86 4.32 3.82 1.63 3.39

Non Institutions 47.46 45.45 44.91 47.78 45.27

Total 100.00 100.00 100.00 100.00 100.00

Share holding Trend

43%

8%4%

45%

As of Sept'15

Promoters FII's DII's Non Institutions












13

AnnexureQuarter ended Sept’15 results


3 Months

ended

Preceding 3

Months ended

Corresponding 3

Months ended in

the previous

year

For the Year

ended

9/30/2015 6/30/2015 9/30/2014 9/30/2015 9/30/2014 3/31/2015

Unaudited Unaudited Unaudited Unaudited Unaudited Audited

1Income from Operations

(a) Net Sales/Income from Operations (Net of excise duty) 79,783.18 97,322.08 98,660.53 177,105.26 210,871.45 396,227.44

(b) Other Operating Income 383.21 451.66 602.46 834.87 1,302.10 2,355.44

Total Income from Operations (Net) 80,166.39 97,773.74 99,262.99 177,940.13 212,173.55 398,582.88

2 Expenses

(a) Cost of Materials Consumed 58,442.52 58,238.18 74,156.32 116,680.70 142,720.70 256,149.71

(b) Purchases of Stock-in-Trade 5,486.97 5,974.50 4,832.52 11,461.47 10,564.48 20,504.64

(c) Changes in Inventories of Finished Goods, Work-in-

Progress and Stock-in-Trade (9,407.70) 3,294.78 (8,394.11) (6,112.92) (1,228.22) 8,207.70

(d) Employee Benefits Expenses 10,601.49 10,832.30 10,989.43 21,433.79 22,597.35 43,183.23

(e) Depreciation & Amortisation Expenses 1,546.04 1,612.90 1,348.43 3,158.94 2,836.79 6,605.99

(f) Other Expenses 12,090.30 13,680.51 14,327.25 25,770.81 28,479.36 54,397.78

Total Expenses 78,759.62 93,633.17 97,259.84 172,392.79 205,970.46 389,049.05

3 Profit / (Loss) from Operations before Other Income,

Finance Cost and Exceptional Items (1-2) 1,406.77 4,140.57 2,003.15 5,547.34 6,203.09 9,533.83

4 Other Income 1,476.79 1,120.18 1,028.41 2,596.97 2,039.50 6,064.64

5Profit / (Loss) from Ordinary Activities before Finance

Cost and Exceptional Items (3+4) 2,883.56 5,260.75 3,031.56 8,144.31 8,242.59 15,598.47

6 Finance Cost 1,114.90 1,374.01 1,406.79 2,488.91 2,748.35 5,710.81

7Profit / (Loss) from Ordinary Activities after Finance Cost

but before Exceptional Items (5-6) 1,768.66 3,886.74 1,624.77 5,655.40 5,494.24 9,887.66

8 Exceptional Items 91.55 53.72 3,127.45 145.27 3,114.89 3,062.65

9 Profit /(Loss) from Ordinary Activities before Tax (7-8) 1,677.11 3,833.02 (1,502.68) 5,510.13 2,379.35 6,825.01

10 Tax Expense 58.91 205.79 (717.08) 264.70 (246.16) (646.02)

11 Net Profit / (Loss) from ordinary activities after Tax (9-10) 1,618.20 3,627.23 (785.60) 5,245.43 2,625.51 7,471.03

12 Extraordinary Items (net of tax expense) - - - - - -

13 Net Profit / (Loss) for the period (11-12) 1,618.20 3,627.23 (785.60) 5,245.43 2,625.51 7,471.03

Sl.

No.Particulars

For the Six Months ended

Statement of Standalone Financial Results

PART I

Rs. In LakhsPART I

Standalone Results

For The Quarter & Six Months Ended 30th September, 2015












www.escortsgroup.com 14


14Paid-up equity share capital (Face Value Rs. 10/- each)

12,257.69 12,257.69 12,257.69 12,257.69 12,257.69 12,257.69

Less: Amount recoverable from Escorts Employees Benefit &

Welfare Trust 329.36 329.36 329.86 329.36 329.86 329.36

Paid-up equity share capital (Face Value Rs. 10/- each) 11,928.33 11,928.33 11,927.83 11,928.33 11,927.83 11,928.33

15 Reserves excluding Revaluation Reserves as per balance

sheet - - - - - 164,084.47

16.i Earnings Per Share (before extraordinary items) of Rs. 10

each (not annualised):

(a) Basic (Rs.) 1.36 3.04 (0.66) 4.40 2.20 6.26

(b) Diluted (Rs.) 1.36 3.04 (0.66) 4.39 2.20 6.26

16.ii Earnings Per Share (after extraordinary items) of Rs. 10

each (not annualised):

(a) Basic (Rs.) 1.36 3.04 (0.66) 4.40 2.20 6.26

(b) Diluted (Rs.) 1.36 3.04 (0.66) 4.39 2.20 6.26

3 Months

ended

Preceding 3

Months ended

Corresponding 3

Months ended in

the previous

year

For the Year

ended

9/30/2015 6/30/2015 9/30/2014 9/30/2015 9/30/2014 3/31/2015


A PARTICULARS OF SHAREHOLDING

1 Public shareholding

- Number of shares 69,853,240 69,852,240 71,143,128 69,853,240 71,143,128 71,132,128

- Percentage of shareholding (%) 56.99 56.99 58.04 56.99 58.04 58.03

2 Promoters and Promoter Group Shareholding

a) Pledged / Encumbered

Number of shares Nil NIL NIL Nil NIL NIL

- Percentage of shares (as a % of the total shareholding of

promoter and promoter group) Nil NIL NIL Nil NIL NIL

- Percentage of shares (as a % of the total share capital of the

company) Nil NiL NIL Nil NIL NiL

(b) Non - encumbered

Number of shares 52,723,638 52,724,638 51,433,750 52,723,638 51,433,750 51,444,750

- Percentage of shares (as a % of the total shareholding of

promoter and promoter group) 100.00 100.00 100.00 100.00 100.00 100.00

- Percentage of shares (as a % of the total share capital of the

company) 43.01 43.01 41.96 43.01 41.96 41.97

B Investor Complaints

- Pending at the beginning of the quarter

- Received during the quarter

- Disposed of during the quarter

- Remaining unresolved at the end of the quarter

3 Months ended 30/09/15

Part II

Select Information for the Quarter & Six Months Ended 30/09/2015

Sl.

No.Particulars


Nil

-

-

Nil

Standalone Results














Statement of Assets and Liabilities

Particular

9/30/2015 3/31/2015

EQUITY AND LIABILITIES

1 Shareholders' Funds

a. Share Capital 11,928.33 11,928.33

b. Reserves & Surplus 172,945.88 167,701.23

Sub-total - Shareholders Funds 184,874.21 179,629.56

2 Non-current Liabilities

a. Long-term Borrowings 7,128.24 10,580.84

b. Other Long-term Liabilities 3,489.91 3,453.58

c. Long-term Provisions 9,028.27 11,354.79

19,646.42 25,389.21

3 Current Liabilities

a. Short-term Borrowings 31,676.19 30,259.53

b. Trade Payables 74,645.09 70,063.22

c. Other Current Liabilities 25,511.35 24,577.28

d. Short-term Provisions 7,445.89 8,790.37

Sub-total - Current Liabilities 139,278.52 133,690.40

Total Equity and Liabilities 343,799.15 338,709.17

ASSETS

1 Non Current Assets

a. Fixed Assets 163,164.86 163,841.92

b. Non-current Investments 38,602.58 38,002.58

c. Deferred Tax Assets (Net) 5,123.50 4,781.30

d. Long-term Loans and Advances 2,038.20 1,980.49

e. Other Non-current Assets 293.48 293.48

Sub-total - Non-Current Assets 209,222.62 208,899.77

2 Current Assets

a. Current Investment 396.20 342.20

b. Inventories 47,457.50 41,591.98

c. Trade Receivables 41,264.76 39,705.86

d. Cash and Cash Equivalents 26,476.99 23,640.58

e. Short-term Loans and Advances 17,923.81 23,320.26

f. Other current assets 1,057.27 1,208.52

Sub-total - Current Assets 134,576.53 129,809.40

Total Assets 343,799.15 338,709.17

For ESCORTS LIMITED

Place : Faridabad (RAJAN NANDA)

Date : 02/11/2015 CHAIRMAN

CIN - L74899HR1944PLC039088

Registered Office :: SCO 232 1st Floor , Sector 20, Panchkula, Haryana -134109

Rs. In Lakhs

Standalone

As at As at














Rs In Lakhs

3 Months

ended

Preceding 3

Months ended

Corresponding 3

Months ended in

the previous year

For the Year

ended

9/30/2015 6/30/2015 9/30/2014 9/30/2015 9/30/2014 3/31/2015


1 Segment Revenue:

a) Agri Machinery Products 60,973.22 81,220.88 80,300.71 142,194.10 174,942.85 321,082.83

b) Auto Ancillary Products 2,424.61 2,896.57 2,681.51 5,321.18 4,974.46 10,361.32

c) Railway Equipments 5,354.56 4,878.75 4,734.21 10,233.31 9,005.45 18,374.58

d) Construction Equipments 12,449.58 9,343.60 12,148.71 21,793.18 24,257.37 51,576.78

e) Others 0.00 44.19 0.00 44.19 0.00 0.00

f) Unallocated 253.74 119.11 78.93 372.85 315.92 537.60

Total 81,455.71 98,503.10 99,944.07 179,958.81 213,496.05 401,933.11

Less: Inter Segment Revenue 575.88 419.96 457.51 995.84 952.98 2,036.64

Net Segment Revenue 80,879.83 98,083.14 99,486.56 178,962.97 212,543.07 399,896.47

2 Segment Results:


b) Auto Ancillary Products (465.20) (427.38) (699.49) (892.58) (1,620.89) (2,366.46)

c) Railway Equipments 800.27 632.09 455.05 1,432.36 617.87 1,753.19

d) Construction Equipments (487.73) (1,116.44) (1,080.28) (1,604.17) (1,977.64) (2,482.02)

e) Others (29.05) 16.31 (28.46) (12.74) (54.24) (115.84)

Total 3,924.41 6,450.64 4,331.52 10,375.05 10,467.06 19,716.13

Less :

- Finance Cost 1,114.90 1,374.01 1,406.79 2,488.91 2,748.35 5,710.81

- Exceptional Items 91.55 53.72 3,127.45 145.27 3,114.89 3,062.65

- Other unallocable expenditure 1,040.85 1,189.89 1,299.96 2,230.74 2,224.47 4,117.66

(Net of unallocable income)

Total Profit Before Tax 1,677.11 3,833.02 (1,502.68) 5,510.13 2,379.35 6,825.01

3 Capital Employed

(Segment Assets – Segment Liabilities)


b) Auto Ancillary Products 5,202.23 5,166.91 5,849.15 5,202.23 5,849.15 5,139.64

c) Railway Equipments 9,017.60 9,080.27 8,288.94 9,017.60 8,288.94 12,360.86

d) Construction Equipments 16,081.25 16,251.52 24,275.67 16,081.25 24,275.67 17,483.07

e) Others 556.98 559.15 321.43 556.98 321.43 517.63

f) Unallocated 100,759.55 98,469.99 96,400.36 100,759.55 96,400.36 99,736.47

Total 243,796.73 226,839.14 241,377.70 243,796.73 241,377.70 242,536.86

ESCORTS LIMITED

ParticularsSl.

No.

Standalone

Segment Wise Revenue, Results And Capital Employed, For The Quarter & Six Months Ended 30th September, 2015













17


Notes :

1

2 Tax expense comprise of current tax, deferred tax liabilities / assets and MAT credit entitlement, if any.

3

4

For ESCORTS LIMITED

Place : Faridabad

Date : 02/11/2015 (RAJAN NANDA)

CHAIRMAN

CIN - L74899HR1944PLC039088

Registered Office :: SCO 232 1st Floor , Sector 20, Panchkula, Haryana -134109

Capital Employed has been calculated as "Total Assets Less Current Liabilities excluding Short Term Borrowings and Debt payable within 1 year".

The above results were reviewed by the Audit committee at its meeting held on 2nd November, 2015 and were approved and taken on record by the Board of Directors at their

meeting held on the same date.

Figures for the previous periods have been regrouped/restated, wherever necessary, to correspond with the figures of current period.











18

Our Values











19

Contact Details

Escorts Ltd.(CIN: L74899HR1944PLC039088)

Corporate Centre15/5 Mathura RoadFaridabad – 121003

Phone: +91 129 [email protected]

Bharat Madan +91 129 2293447

(Group Financial Controller) [email protected]

Investor Relations Team

Pankaj Dhawan +91 129 2564711

[email protected]

Prateek Singhal +91 129 2564921

[email protected]

Certain statements in this document may be forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties like regulatory changes,local political or economic developments, and many other factors that could cause ouractual results to differ materially from those contemplated by the relevant forward-lookingstatements. Escorts Limited will not be in any way responsible for any action taken based onsuch statements and undertakes no obligation to publicly update these forward-lookingstatements to reflect subsequent events or circumstances.

Safe Harbor












mailto:[email protected]



escorts ltd. - best tractor manufacturing companies india, …€¦ · · 2017-08-09escorts ltd....

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